JPMorgan assumes coverage on Kraft Heinz stock with Neutral rating

Investing.com - JPMorgan has assumed coverage on Kraft Heinz Company (NASDAQ:KHC) with a Neutral rating and a price target of $27.00, down from the previous target of $30.00. According to InvestingPro data, the stock currently trades below its Fair Value, with a market capitalization of $32.7 billion.

The firm maintains a cautious stance on the food manufacturer, noting that while Kraft Heinz’s valuation multiples are already at historically low levels and its dividend yield stands at an attractive 5.78%, the company faces persistent challenges in its North American business. InvestingPro analysis shows a strong free cash flow yield of 11%.

JPMorgan points out that Kraft Heinz has experienced North American volume declines of at least 3% year-over-year for 13 consecutive quarters, with ongoing market share losses across most key retail categories.

The research firm acknowledges some positive developments in parts of Kraft Heinz’s business, particularly highlighting improvements in emerging markets performance.

Despite these bright spots, JPMorgan questions how much longer Kraft Heinz can avoid making significant price investments similar to those that have affected earnings outlooks for comparable lower-growth peers like Conagra, Campbell Soup (NASDAQ:CPB), and General Mills (NYSE:GIS).

In other recent news, Kraft Heinz reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $0.69, exceeding the forecasted $0.64, marking a 7.81% surprise. Revenue also came in above estimates, reaching $6.35 billion compared to the anticipated $6.25 billion. Despite organic sales declining by 2% and volume decreasing over 2.5%, Kraft Heinz managed to deliver stronger-than-expected profit, partly due to a 100 basis point tailwind from the Easter timing shift. Stifel has maintained its Hold rating on the company, reiterating a price target of $30.00 following these results. These developments indicate a positive performance for the company, as reflected in the recent analyst assessments.

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